- Bitcoin struggles to stay above $116,000, with indicators suggesting a potential drop if support levels are breached.
- Ethereum and XRP show early signs of decline, as key levels come under pressure following recent gains.
The prices of Bitcoin, Ethereum, and XRP are showing signs of weakness. After weeks of gains, the market is now slowing down. Traders are closely monitoring key support levels, as indicators suggest a potential correction for all three assets.
Bitcoin Stuck in Narrow Range as Momentum Fades
The largest digital asset, Bitcoin, has been moving between $115,000 and $120,000 for the past few days. After hitting a high of $123,218 earlier this month, the price has struggled to push higher. As of Friday, it was trading near $115,805.09, the lower end of the range, down 1.51%.
Per the outlook, if it drops below that point, the next possible level is the 50-day Exponential Moving Average at $111,458.
This could mean more downside in the short term. The daily Relative Strength Index has fallen to 55 and is facing down, which shows buyers are losing strength. The MACD also issued a sell signal on Wednesday, indicating weaker momentum.
Similarly, as noted in our previous news brief, Bitcoin’s bull market signal is approaching a level that typically indicates the market is overheated, which could lead to a slowdown or a shift in direction. An analyst has advised that investors should wait until the market cools down instead of buying at this stage.
On the other hand, if Bitcoin rises above $120,000, it may return to its recent high. However, for now, buyers seem hesitant, and the chart shows no strong signs of a move up. This range could break either way, but current signals lean toward a dip.
Ethereum and XRP Under Pressure as Sellers Return
It is worth noting that Ethereum has had a tough week. The price fell by over 3% on Wednesday after failing to hold above $3,730. It later bounced from $3,500 but is now struggling again. On Friday, it traded below the earlier resistance and is at risk of falling back toward $3,000 if $3,500 does not hold.
The RSI is currently pegged at 72 but is falling, indicating that the earlier buying wave is cooling off. The MACD bars are also shrinking, a sign that the recent push is losing strength. The coin has jumped 3.17% as writing to $3,720.
Beyond the current price decline, some market analysts still believe Ethereum has the potential to rise significantly this year. For example, as noted in our earlier report, former BitMEX CEO Arthur Hayes believes that Ethereum could reach $10,000 by the end of 2025.
Ripple’s XRP has dropped more sharply. After hitting $3.66 last week, the price fell below $3.40 on Wednesday. It then reached $2.99 on Thursday and remained below $3.10 by Friday, up marginally by 1.49%. The MACD has turned negative, and the RSI has dropped to 58. If it breaks below $2.99, the next level to watch is $2.72.
It is also worth noting that, despite the decline continuing, CNF reported a significant transfer involving XRP. A wallet linked to Ripple co-founder Chris Larsen recently moved $175 million worth of XRP. This has raised fresh concerns among investors about possible sell-offs.
Still, both Ethereum and XRP are showing signs of weakness. If prices do not recover soon, more selling could follow. The market is overall cooling off, and without fresh interest from buyers, these assets may continue to decline in the days ahead.
Recommended for you:
Credit: Source link
